PRESS DIGEST - British business - June 10

The Times

JD'S WORLD CUP HOPE

JD Sports Fashion (JD.L) is confident that its clothing lines will benefit from the World Cup, regardless of the success or failure of the England team. The second biggest chain of sports shops in the UK is relying on the fact that its clothing is less sport-specific than its main rivals JJB Sports (JJB.L) and Sports Direct (SPD.L). Chairman Peter Cowgill hopes that by focusing on the trendier end of the market, the business will be less exposed to England's success. In the eight weeks to June 5, like-for-like sales at JD Sports climbed by 4.1 percent, with performance at its sports chain outweighing a 1.2 percent drop in like-for-like sales in its Bank and Scotts fashion shops.

BT SLAMS CWU LEADERS

British Telecom (BT.L) has criticised senior figures at the Communication Workers' Union, which represents workers at the firm, after they rejected a pay deal offering staff a 5.1 percent pay rise over 21 months. The CWU said it now intended to hold a ballot for industrial action. The telecoms giant expressed its "surprise and disappointment" over the failure of the pay negotiations.

DEAL OF THE DAY

Energy storage and clean fuels group ITM Power (ITM.L) has announced that logistics provider DHL and London Stansted Airport have both agreed to take part in hydrogen-on-site trials of the firm's transportable high-pressure refuelling unit. The trials will begin in 2011. The hydrogen produced during the trials will be used to fuel specially adapted Ford Transit vehicles. Shares in ITM Power rose 3.5 pence to 28.5 pence on the news.

NEED TO KNOW: AUTONOMY

Enterprise software company Autonomy AUTN.L, the largest technology company in Britain, has acquired the information governance arm of CA Technologies, the software firm formerly known as Computer Associates. The deal is understood to be valued at under 13.7 million pounds and will enable Autonomy to add 500 large customers to its base.

TEMPUS

IG Group (IGG.L) (hold)

Imperial Innovations (IVO.L) (tuck away)

The Daily Telegraph

ANGER AT PRU'S MCKINSEY BILL

McKinsey, the management consultant, has been revealed as a beneficiary of Prudential's (PRU.L) failed 35.5 billion dollar acquisition for AIA. The company, which has twice employed Pru chief executive Tidjane Thiam, was paid three million pounds for work on integrating the two companies. Robin Geffen, managing director of shareholder Neptune Asset Management, said: "Why bring in McKinsey and run up three million pounds of bills before you even have shareholder approval?"

MOTHERCARE CHIEF RECEIVES 6.5 MILLION POUNDS

Ben Gordon, chief executive of Mothercare (MTC.L), the maternity and babywear retailer, received a total remuneration of 6.5 million pounds in 2009, up from 1.4 million pounds on the previous year. The executive has been praised for turning the company around since he joined in 2002. Gordon received a basic salary of 600,000 pounds, as well as 5.6 million pounds after his Executive Incentive Plan finished its cycle and a performance bonus of 224,000 pounds.

BOLLAND PROMISES TO KEEP M&S GREEN

Marc Bolland, the new chief executive of retailer Marks & Spencer (MKS.L), has pledged to commit to M&S's "Plan A" ethical policy. The pledge came as the British retailer announced it had generated 50 million pounds in additional profits against its expectation that the plan would cost it 200 million pounds over five years. To date, the plan has helped M&S cut the amount of waste it is sending to landfill by a third as well as cutting non-glass food packaging by a fifth. The retailer's latest update on the progress of Plan A said the policy was "an excellent way to stay close to customers and their concerns" and reflected "where society is heading in the future".

SHELL TO RELOCATE HALF OF HQ STAFF TO OFFICES IN CANARY WHARF

Royal Dutch Shell (RDSa.L), the global energy group, has agreed a deal to move from its current UK headquarters on London's South Bank to Canary Wharf. James Smith, chairman of Shell UK, said the Shell Centre was the firm's "home in London" and "an exceptional location in one of the world's great cities" but added that the South Bank site would now be redeveloped "to its full, modern potential". Shell will pay 37.50 pounds per square foot for the Canary Wharf site, with the first four years rent free, after signing a 15-year deal that will see it occupy ten floors with the option of a further two.

QUESTOR

RSA Insurance (RSA.L) (buy)

IG Group (IGG.L) (hold)

The Independent

BA STAFF FACE FRESH BALLOT

Len McCluskey, the assistant general secretary of the trade union Unite, has told a rally of British Airways BAY.L cabin crew at Heathrow that plans for a fresh ballot on industrial action at the airline are at an "advanced stage". Members of Unite continued their industrial action into a 22nd day on Wednesday, meaning the dispute has now cost BA over 150 million pounds. McCluskey blamed a "tough guy" attitude on the part of BA's management for the continued action, saying that BA's handling of the strike "should cause despair among BA board and shareholders".

INVESTMENT COLUMN

Barratt Developments (BDEV.L) (sell)

Autonomy AUTN.L (buy)

Dewhurst (DWHT.L) (buy on weakness)

The Guardian

1,000 JOBS AT RISK IN DUNDEE AND TEESSIDE

Unite, the trade union, has criticised proposals being made by Barclaycard and DC Thompson for their potentially devastating effect on the job market in northeast England and Scotland. Credit card provider Barclaycard is in negotiations with Firstsource Solutions, the Indian outsourcing specialist, over the possibility of moving its customer services call centre, currently based in Teesside and employing 700 people, to India. DC Thompson, which prints the Sunday Post as well as a collection of children's comics, is considering shutting its Dundee printing centre, which could cost 350 jobs. Unite's national officer Rob McGregor, speaking about the Barclaycard proposals, said that it was vital that jobs remained on Teesside.

Prepared for Reuters by Durrants